Practice Basic Accounting Concepts (15.3) - Accounting Principles and Concepts

Practice: Basic Accounting Concepts

Lesson 15.3Accounting Principles and Concepts

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10 questions

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4 cards from this section. Quick, good the night before a test.
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6 sample questions

Question 1.
What is the Business Entity Concept?
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Think about the separation of finances.
Question 2.
Can employee satisfaction be recorded in financial statements?
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Consider what can be quantified.
3Question 3.
What does the Business Entity Concept entail?
- A) The business and its owner are one.
- B) The business is separate from its owner.
- C) Only the owner's finances are recorded.
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Think about how business transactions should be reported.
4Question 4.
True or False: The Money Measurement Concept allows for recording qualitative factors like employee morale.
- True
- False
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Consider what types of transactions can be quantified.
Question 5.
A company has incurred expenses of ₹1,00,000 for services in March but pays ₹30,000 in April. How should these be recorded according to the Matching Concept?
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Think about the timing of expenses and associated revenues.
Question 6.
You purchase a piece of equipment for ₹2,00,000, which later depreciates to ₹1,50,000. How will you manage this according to the Cost and Going Concern Concepts?
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Consider how historical costs factor into long-term asset management.

6 more questions in this section. Enroll free to practise them all.